Credit Cared cancelled

branbarn

After 4 years of having a credit card (which admittedly is near its limit) I have received a letter telling me my card wont be re-issued when it expired. They have said this is due to a review of of their lending decision and how I have managed the card. I have never defaulted on the payments and have always paid on time bar one occasion when I was 3 days late as I forgot to pay and immediately rectified the situation.

What I would like to know is if this is standard and will it effect my credit rating?

Any advice gratefully received.

chattychappy

Unless that one occasion was very recent, I would say it is unusual but it does happen. Have you been late with payments elsewhere or had any other issues? It might be worth getting copies of your reports from the CRAs in case there has been some error.

The impact on your credit rating should be indirect only. When you have paid this card down, then the account will be showed as settled. If you don't have any other accounts then it will be negative - because lenders like to see you operating accounts normally.

Really it depends on what else is going on in your history.

Two or three years ago (?), Halifax closed a number of accounts (including mine). A few weeks later it was reported that this was all down to an IT error and people were getting them re-opened on request. (I didn't bother.) So banks do make mistakes sometimes - and/or changing policies can cause them to say goodbye to profit-earning customers like you who in other circumstances they might work hard to get!